Pedregon Corporation has provided the following information:
| Cost per Unit | Cost per Period | ||||
| Direct materials | $ | 7.00 | |||
| Direct labor | $ | 3.60 | |||
| Variable manufacturing overhead | $ | 1.25 | |||
| Fixed manufacturing overhead | $ | 10,800 | |||
| Sales commissions | $ | 0.45 | |||
| Variable administrative expense | $ | 0.55 | |||
| Fixed selling and administrative expense | $ | 3,200 | |||
If 3,000 units are produced, the total amount of manufacturing overhead cost is closest to:
Multiple Choice
Explanation
| Total variable manufacturing overhead cost | ||
| ($1.25 per unit x 3,000 units) | $ | 3,750 |
| Total fixed manufacturing overhead cost | 10,800 | |
| Total manufacturing overhead cost (a) | $ | 14,550 |
No comments:
Post a Comment